0350 Law and Economics in Mexico

0350
LAW AND ECONOMICS IN MEXICO

Andrès Roemer and José Diego Valadés
© Copyright 1999 Andrès Roemer and José Diego Valadés
Abstract
Despite its almost exponential growth, particularly since 1983, economic

analysis of law is still an area of minor importance in Mexico. Economic
analysis of law is still not an integral part of legal education. Legal
scholarship is formalistic in general, and is concerned more with definitions
that with the purposes of legal provisions.
This discipline’s main achievement in the academic community has been
its contribution to forming a different juridical mentality, whether of
research, policy or analysis.
Since its establishment on April 6, 1995, the Mexican Academy of Law
and Economics has carried out several academic, teaching and research
activities.
JEL classification: K00.
Keywords: Research, Teaching, Mexican Academy of Law and Economics.
1. Introduction
Despite its almost exponential growth, particularly since 1983, economic

analysis of law is still an area of minor importance in Mexico. However, its
growth rate and the weakness of its adversaries are indications that
economic analysis of law will soon become an important trend in legal
research and in public policy matters.
There are approximately 40 people working in this field. Some are
full-time academicians and most of them work for the federal government.
Their writings are concerned mainly with the problems of the Mexican
regulation system and are almost always written in Spanish. Because of their
small number and their relatively high demand, research tends to cover a
considerable diversity of topics instead of concentrating on particular areas.
Among others, we can mention the following topics that have been the
object of analysis in this field: regulation, law and economics, education, the
economics of water, contracts, ownership, institutions, public services, labor
legislation and domestic trade.
It should be mentioned that legal knowledge in Mexico is formalistic in
general, and Mexican legal scholars have a greater relationship with
262
0350 Law and Economics in Mexico 263
scholars of continental Europe, particularly with Spanish, Italian and French

academicians, than with Americans, the ones who substantially inspired this
discipline. On the other hand, the participation by legal scholars in the
political process is remarkable. This influence is characterized by different
routes, significantly through members of courts, the executive branch, the
Congress, and the high-level bureaucracy.
Based on the foregoing, in Mexico a large part of the evolution of
economic analysis of law has grown significantly from public sector
parameters. Lawyers and economists, particularly specialists in
microeconomics theory, keep in mind the usefulness of economic analyses of
law in the field of public policy. An important example in this respect is the
new agrarian legislation that, without ignoring the principles of justice, was
clearly revised using standards of economic efficiency.
2. Law and Economics at Mexican Universities
In the academic community there are few Mexican universities that show
any interest in economic analysis of law. Among them we can mention the
Autonomous Technological Institute of Mexico (ITAM), Center for
Economic Research and Teaching (CIDE). Likewise, a certain interest has
been detected in the Law School of the National Autonomous University of
Mexico (UNAM) (since the new curriculum of 1993, there exists a course
related to economic matters in each of the 10 semesters), the National
Institute of Public Administration (INAP), and the University of the
Americas in Puebla (UDLA).
This discipline’s main achievement in the academic community has been
its contribution to forming a different juridical mentality, whether of
research, policy or analysis. Students often see the emphasis on the real or
potential effects of law and economics through the incentives it produces and
the importance of the costs of the legal system as the main contribution of
the economic approach to law.
In law schools, most teaching related to economics is given in courses
that concern economic theory, history of economic thought and economic
law (part of Mexican social law). These courses are part of the law schools’
curriculum (first, second and seventh semesters respectively). This teaching
lasts approximately four months per term.
3. The Mexican Academy of Law and Economics
As regards economic analysis as a movement, the Mexican Association of

Law and Economics (called Mexican Academy of Law and Economics since
May of 1997) (AMDE) was founded on April 6, 1995 with the important
support of professors Robert Cooter and Albert Fishlow, as well as of the
former President of Mexico, Miguel de la Madrid Hurtado, the former
Federal Attorney of Mexico, Pedro Ojeda Paullada, the President of the
ITAM, Dr Arturo Fernández, and Andrès Roemer. Being part of the Latin
American and Caribbean Association of Law and Economics, the AMDE
has more than 30 founding members, 27 numerary members (who have
presented academic papers and are current with their fees), as well as 25
supernumerary members (who are current with payments but have not
presented any related academic paper) and another 400 people interested in
the Academy (who attend congresses and seminars).
Since its establishment on April 6, 1995, the Mexican Academy of Law
and Economics has carried out academic, teaching and research activities
among which the following should be mentioned:
To date more than 137 research papers have been compiled that address
‘Economic Analysis of Sexual Commingling and Regulation’,
‘Microeconomics of Civil Liability and the Marriage Contract’, to ‘Analysis
of the Free Trade Agreement’.
- A data base in the subject has been formed with 9000 academic
essays from more than fourteen countries, indexed by place, topic
and author.
- Two National Congresses have been held with more than 200
participants in each one.
- Economic Analysis of Law courses have been implemented in the
Autonomous Technological Institute of Mexico (ITAM), in the
Center for Economic Research and Teaching (CIDE) and in the
Autonomous Metropolitan University (UAM), as well as seminars in
the National Institute of Public Administration (INAP), the
University of the Americas, Puebla Campus and in the Law School
of the National Autonomous University of Mexico (UNAM).
- The Annual National Law and Economy award was established for
the best research paper in the area, as well as the Robert Cooter
Award for the best academic paper in Law and Economics from the
ITAM.
- The respective Academies were likewise formed in the States of
Puebla, Coahuila, Chiapas, Jalisco, Oaxaca and Veracruz.
4. Perspectives
As regards publishing services, no single journal has been created dedicated

specifically to the economic analysis of laws. Lawyers are critical of
economic analysis of law. One of the reasons could be that Mexican
academic lawyers lack an understanding of quantitative methods; another
reason is that there has been scant contribution by Mexican economists to
law, although some economists have taught in the law schools and, more
significantly, a number of legal scholars question the essential deontological
bases and the fundamental validity of economic analysis in general.
As can be seen, economic analysis of law is still not an integral part of
legal education. Mexican juridical training and some other institutional
circumstance can explain the reason why. Juridical formalism in Mexico is
concerned more with definitions that with the purposes of legal provisions.
On the other hand, the economic approach to law would seem instrumental
and deals mainly with how certain aims can be achieved by giving the
member or members of a society incentives. However, we should not be
pessimistic as to the future of economic analysis of law in Mexico. The
positive factors must not be overlooked. In the first place, as mentioned
previously, academic lawyers and economists have an interest in applying
economics to law. In the second place, in some law schools there seems to be
a dissatisfaction with the traditional teaching of law as an autonomous
discipline. Thirdly, a considerable number of young academicians are
interested in the international perspectives, and consequently in the new
juridical perspectives. Lastly, as was shown, the application of economic
analysis of the legislation in force in Mexico has produced fruits and is
being practiced profusely. This will probably be reflected in legal education
in the medium and long terms.
Thus, the presence and influence of economic analysis of law will
continue to grow, both from the legal and from the social point of view. The
future of law and economics in Mexico depends crucially on the ability of
this discipline to show in a simple way, not just the potential but the real
value of this approach. It must also show its own limitations and
reciprocities with the science of law: the what and the how of legal
knowledge can contribute to the development of law and of economics. This
kind of cooperation is necessary for an interdisciplinary approach such as
law and economics. Meanwhile, public policies will continue to be the main
source of demand (and inspiration) for economic analysis of law in this
country.
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0350

LAW AND ECONOMICS IN MEXICO

Despite its almost exponential growth, particularly since 1983, economic

Despite its almost exponential growth, particularly since 1983, economic

scholars of continental Europe, particularly with Spanish, Italian and French

2. Law and Economics at Mexican Universities

3. The Mexican Academy of Law and Economics

As regards economic analysis as a movement, the Mexican Association of

As regards publishing services, no single journal has been created dedicated

Bibliography on Law and Economics in Mexico (0350)

Roemer, Andrès, Privatization: the Mexican Versus the French Case.

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